Suburbs like Caulfield may become more affordable

Research shows that housing within suburbs like Caulfield could become more affordable.

The CoreLogic report indicates that property in the South East and Outer East of Melbourne declined in value recently. The prices of units and houses in places such as Caulfield were affected significantly, but the value of Melbourne’s inner-city housing was impacted too. Brochure printing can be useful for firms that operate in the property sector.

The affordability of housing in Melbourne and Sydney has wide implications for the future development of the Australian economy. Median values in Melbourne remain more affordable than median values within Sydney. Tim Lawless is the leading researcher at CoreLogic, and explained:

“Sydney and Melbourne comprise approximately 60% of Australia’s housing market by value, and 40% by number, so the performance of these two cities has a larger effect on the headline market performance.”

Prices in Australia recently dropped at an annual rate not witnessed for several years. This observation is more telling than the monthly price variation. While there is some uncertainty going forward, a further dip in property prices is not out of the question, and Lawless believes that the trend has become more entrenched than it was.

The reasons for the softening of the property market in Melbourne may be complicated. Nonetheless, changing credit conditions do seem to be having an influence on property prices.